Aug. 8 (Bloomberg) -- Saudi Arabian Oil Co., the world’s
largest crude exporter, will invest as much as $120 million a
year in European startup companies through a Norwegian venture
capital firm to strengthen its technological know-how.

Saudi Aramco, as the state-owned company is known, signed a
deal with Oslo-based Energy Capital Management, which previously
managed investments for Statoil ASA, Norway’s largest oil and
gas producer, it said in a statement. Investments will focus on
technology companies specializing in so-called unconventional
and tight gas production, as well as drilling and seismic
technologies, Arne Froeiland, an ECM partner, said yesterday.

“We are seeking to make three or four investments a
year,” he said by mobile phone, adding each may reach $30
million. “There are few dedicated sector funds when it comes to
startups, venture and growth companies in oil and gas. Those who
invest in our sector have had good returns over time but the
number of players is limited.”

Saudi Aramco last month set up a venture capital branch,
Saudi Aramco Energy Ventures LLC, to gain access to drilling and
production technologies and boost recovery from current fields.
Aramco also plans to tap unconventional resources, Amin Nasser,
senior vice president for upstream operations, said in April.

ECM, with offices in Oslo, and Aberdeen, Scotland, will be
Aramco’s exclusive VC manager in Europe. The Saudi company plans
to set up teams in North America, it said in a statement last
month. Bloomberg reported in June that Aramco’s venture branch
would have offices in Aberdeen, Houston and Boston.

Early Growth

Aramco’s European partner will seek investments “between
startup and early growth,” Froeiland said. They will be from $1
million to $30 million each for a minority stake and in most
cases board seats or observer rights, SAEV said on its website.

While Aramco said it would look to invest in the upstream
and downstream oil and gas sectors, as well as renewable energy,
energy efficiency and water technology, ECM will focus upstream,
Froeiland said. The acquisitions will probably include imaging
technologies, well and drilling technologies, and systems for
tight and unconventional gas production, such as shale gas.